policies, or practices.
OREIGN AGRICULTURE July 22,
Loading grain, Australia.
More Grain Israeli
Processed Food Exports
Foreign Agricultural Service U.S. DEPARTMENT
FOREIGN AGRICULTURE VOL.
29 • July 22, 1974
Sowing More Grain For the 1974-75 Crop Year
In this issue:
Sowing More Grain 1974-75 Crop Year
Australia for the
World's Sugar Output Heads
Leslie C. Hurt
Turkey’s Cotton Acreage Up Despite Lagging Export Sales By Larence E. Osborn and Horace G. Porter
Processed Foods Gain Importance on World Markets By Michael E. Kurtzig
Wheat and Rice Crops Could Alter
Crops and Markets
ustralian grain farmers, harried by heavy rains and flooding in some growing areas, are increasing their plantings for the 1974-75 crop year. Given favorable weather, the volume of grain available for export should be up substantially over 1973-74 levels.
are planting a total
But the Labor Government has been returned, and further negotiations will have to be held with Western Australia.
uncertain, as pres-
ent legislation requires that the industry situation be referred to the Industries
not implemented by June 30.
of 10-11 million hectares (1 hectare=
The 1973-74 Australian wheat crop was finally tallied at 12,045,000 tons, of which nearly 1.8 million tons about were of offgrade wheat. 15 percent Small quantities of Prime Hard Wheat were harvested in Queensland and in
the expectation of a
12.5-13 million metric ton crop.
production of most coarse grains also
expected to be higher than in the 1973-
74 crop year. June plantings for the coming winter wheat season are being delayed in some
Party Government to
areas of northern Victoria, and lack of
This week’s cover:
Loading bulk grain carriers with wheat near Narromine, New South Wales, Australia. Both wheat and coarse grain outturns in Australia are expected to be higher in the 1974-75 crop year— weather permitting—than in 1973-74.
force postponement of planting. If
adverse weather should impose de-
9.5-10 million hectares would appear
Average Australian wheat been about 1.18
yield in recent years has
tons per hectare.
Clayton K. Yeutter, Assistant Secretary for International Affairs
Commodity Programs David L. Hume, Administrator,
eign Agricultural Service Editorial
Kay Owsley Patterson, Editor Patricia 0. MacPherson, Mary Frances Owsley, G. H. Baker, Marcellus P. Murphy, Isabel A. Smith, Susan E. Atkins. Advisory Board: Kenneth F. McDaniel, Chairman;
0. Fraser, Elmer W. Hallowell, William Horbaly, Rich-
ard M. Kennedy, J. Larry B. Marton,
Don Looper, Brice
Meeker. The Secretary of Agriculture has determined that publication of this periodical necessary in transaction of public business required by law of this Department. Use of funds for printing Foreign Agriculture has been approved by the is
Management and Budget (May
Yearly subscription rate: $20.00 domestic, $25.00 foreign; single copies 45 cents. Order from Superintendent of Documents, Government 14,
Printing Office, Washington, D.C. 20402. Contents of this magazine may be re-
printed freely. Use of commercial and trade names does not imply approval or constitute endorsement by USDA or Foreign Agricultural Service.
plantings in Western and South
New South Wales will be substantially higher than in the 1973-74 crop year. One indication is Australia and in
that sales of superphosphate fertilizer in Western Australia were about 35 percent higher than last year, and in South Australia were up by over 10 percent before the Government announced that it was ending the fertilizer subsidy.
Although part of these increased
may have been
anticipation of the
subsidy’s removal, it seems clear that most of the larger purchases were in-
tended for extended plantings. Australian export wheat clined in early
in response to favor-
able crop reports in the United States and other producing countries in the Northern Hemisphere. Australia’s
Plan that was to be introduced in the
1974-75 crop year
has not been Governments. Although New South Wales ultimately agreed to the plan under heavy Federal pressure, the new Western Australian Government refused to cooperate and pass complementary legislation probably in the hope that the Federal elections would return a Liberal-Country accepted by
Tall ventilation pipes in
New South Wales
storage shed control moisture content, a procedure vital in maintaining rice in perfect condition and preventing the grain from cracking. rice
South Wales. Deliveries
to the Australian
Wheat Board totaled of which more than
one-third were from Western Australia.
In order to market the total crop to best advantage, the
Board established a
number of 38
tons available for export. Virtually
have been sold
The Board maintained ping program in the
the 1973-74 crop year,
Republic of China
stocks held by the
Board as of December 485,209 tons, giving a supply sales
11,552,400 tons. require
to the People’s
probably will try to hold a minimum carryover of about 635,000 tons at the
end of the current marketing year, which would make about 8.6 million
and 2,000 tons were shipped
season was larger than rose
production last year’s
while oat production totaled just over million tons.
larger barley crop will
permit increased exports of
(PRC) and more
but most of the oats will be retained for
than 500,000 tons of a 600,000-ton con-
replenishment of depleted farm stocks. Barley exports in the December 1973-
tract with the
November 1974 year probably 20,000
metric tons, mainly because of increased sales of offgrade feed wheat.
and has shipped
segregation problems for the State grain
more than 3.5 million more than 700,000 tons
in the six basic grades,
volume has been sold or allocated traditional markets, and more could
a rapid rate this season, probably
1973 con352,000 tract. Exports to Japan are running at a 57,000 to offset the shortfall in the
and reached tons in early May. Another tons went to Indonesia, 54,000
higher level than
tons to Bangladesh, 14,755 tons to Paki-
million tons, mainly to Japan and
Taiwan. The limited oat exports about tons are mainly from Western 1
The wheat areas in Victoria and South Australia most affected by rust last season probably will be switched to barley production. This move, together
Australian wheat farms, such as the one at top, are expected to produce a 12.5-13 million ton harvest in the 1974-75 crop year. Australian farmer, left, examines his ripening crop. Bagged and bulk wheat, above, arriving at Hendy, N.S.W., silos.
Murray River and
tained this season have given producers
the area along the
the Coleambally Irrigation Area.
million hectares, with a potential pro-
some encouragement. Not only have processors been more active in trying to obtain supplies from domestic sources, but inquiries from importing countries
duction of 2.6 million tons.
there will be
with somewhat larger barley plantings
Total barley area could total about 2.2
Oat plantings are expected to remain unchanged at about 1.3 million hectares, as pastoral conditions have been excellent and only limited hand feeding is
United States and other countries the Northern Hemisphere, this favor-
in the in
able marketing position
Following the heavy rainfall experithis year, water supplies are ade-
justification for limit-
ing plantings because of shortages of irrigation water.
The 1974-75 crop may be expected to total at least
380,000 tons paddy, and
required during the winter. With export
long. But Australian growers are never-
could go as high as 400,000 tons
markets for oats unattractive compared
showing more interest in the crop. Area planted is at best unlikely to exceed 80,000 hectares, however, with a potential yield of about 200,000 tons.
wheat prices should also will depend on
Rice production in the 1973-74 crop year is estimated at about 395,000 tons
with other grains, there
to increase production of this crop.
weather and relative prices of oilseeds.
paddy or about 239,000 tons of
he sorghum crop harvest
estimated at about 975,000 tons
ceptionally wet conditions in April
delayed harvesting in
and caused crop
loss as well as quality
However, areas not affected by floods from the heavy rains, and yields of up to 7.5 tons per hectare were recorded in some or harvest delays greatly benefited
normally dry areas. Consequently, the decline in plantings of over 10 percent last
a substantial increase over
Following the relaxation of Govern-
ment restrictions in 1973, growers expanded their plantings sharply from about 45,000 hectares in 1972 to 67,000, with most of the increase occurring in New South Wales. Consequently,
record. Yields were generally satisfactory, but the quality of late harvested
crops deteriorated as a result of wet
volume of offgrade feed
with the collapse of the feedlot boom,
reduced the domestic demand for grain sorghum, and most of the crop greatly
being delivered for export. As a
result, the is
available for export
trend that has been evident over the past few years. Difficult growing conditions during the past 2 seasons
appear to be mainly responsible, although the relatively low prices offered
by the few Australian processors prior to 1973 may also have been a factor.
to Pacific islands.
Returns to growers have increased
The New South Wales crop at
about 60,000 tons from 20,000
and the Queensland outturns at 75,000 tons from 31,500 hectares. The remainder is produced mainly in hectares,
are not yet finalized,
ticipated that growers will receive a rec-
ord high return of about paddy.
export prices hold
from corn ob-
the 1975-76 shipping season.
with expected expansion in production,
South Wales Rice Marketing increasing storage capacity by
about 66,000 tons. This would bring
paddy storage capacity owned by from the current 285,000 tons more than 350,000 tons. Additional
available at the cooperative
Navy bean production in Queensland now expected to be somewhat better than forecast earlier. Flood damage was not as serious as first indicated. Some is
crops were adversely affected, but yields
from early harvested areas have been good to above average.
New United larger
shipments to Pacific
island destinations are likely.
the basis of clean-bean production
of about 3,200 tons, imports of 4,000-
Navy beans will be needed meet domestic market requirements
5,000 tons of to
during 1974-75. Current high prices of
Navy beans on kets may cause the time being
with any certainty. However, the favor-
avy bean plantings in the South Burnett district were slightly in excess of 3,000 hectares, and production from this area is expected to reach 2,100 tons. Crops on the Darlington Downs were somewhat affected by dry
predict plantings for the 1974-75 year
tares last year.
below domestic requirements but substantially better than the poor crop of 1,424 tons harvested from 9,005 hec-
too early in the rice season to
growing season, although good yields were reported from early harvested
Outlook for rice exports in the 197475 (1973-74 crop) is for an increase in shipments to about 180,000 tons. Bulk is
metric tons of clean beans
conditions during the latter part of the
a similar return for the 1973-74 crop seems likely.
of the export volume
able marketing situation during the past
161,000 tons, Guinea, Hong Kong,
and the United Kingdom as major marNew Zealand took its usual volume, Indonesia made a substantial purchase, and the remainder was shipped
the 1972-73 crop
from a harvested area of about 57,000
sharply this year. Although returns for
estimated at about 157,000 tons
milled rice available for export during
Total plantings of
be the major market.
than 50,000 tons greater than
estimated at about 5,200 hectares, and
estimated at about 625,000 tons
in the previous year.
conditions and harvest delays.
Australian exports of milled rice in
of milled rice were produced.
the 1972-73 season,
lead to further expansion in
and world mar-
importers to hold off for
at least until the
Office of U.S. Agricultural Attache
Canberra Foreign Agriculture
High prices slow some consumption
World’s Sugar Output Heads for Second Straight Record Year By LESLIE
Foreign Commodity Analysis,
Sugar and Tropical Products Foreign Agricultural Service
orld sugar production
83.7 million metric tons (92.3 million
short tons) to set an alltime record for
milled mostly in the last half of 1974,
the second consecutive year. Outturns
a record and could reach 1.95 million tons. The 1974-75 Philippine crop will likely exceed 2.6 million
South America, Asia, and Oceania in particular are expected to be higher, while West European production may be about level with 1973-74’s. in
global outturn of both cane and
81.2 million tons
to sugarcane there
continuing to expand.
increase by 200,000
2.2 million tons above estimated con-
offset the small decline likely for beet
sumption requirements and would allow further replenishment of low carryover
World consumption of sugar 75
be another 2 years production will improve
mill will begin operations in
the Philippines at the beginning of the
inhibit output in 1974-75,
winter rains and shortage of irrigation
has continued to increase.
many of the major producing countries. More significant among these
France, South Africa, the
as well as
by the Pyrilla pest
expected to harvest larger crops. The
expected to continue in the
authorized mills to
1974-75 sugar production by 50,000 tons. Brazil has authorized 1974-75 sugar production at a maximum of 125 million bags or 7.5 million increase
The 1974-75 year may see Jamaica’s downward production trend reverse.
Nicaragua and Panama, provided there
France’s sugar beet acreage is about 4 percent above that of 1973-74. Production in West Germany may be about the same as last year’s, although
areas were affected by dry weather
SUGAR: PRODUCTION AND PRICES
but conditions im-
proved as the season progressed. In the United States, production may be about equal to last season’s. Several cane-producing countries are
France, nevertheless, could be up sub-
to increase output. Some West European countries had poor weather
started 6 years ago.
infestation in the northern cane-grow-
under the expansion
change. Acreage and output will not be
creases, sugar prices are controlled in
the last mill
Prospects for beet sugar production
ducers this season.
did last year. Last season’s crop was
Cuba, owing to more mechanization and better prices to propected
higher production. This
33,000 tons short of the 554,000-ton
to be constructed
some evidence suggests that recent high prices have dampened consumption in-
projected levels. In 1973-74, output was
Sugarcane acreage is likely to remain about the same in India for the 197475 crop as for the previous year when general shortage of fertilizer could
increase sugar production to previously
5 million tons of sugar were produced.
compared with about 79.5 the 1973-74 year. Although
the other hand, Venezuela con-
expected to advance to about 81.5
tinues to face setbacks in
tons above the frost-damaged 1973-74
duction in the coming season
1,000 metric tons
1964-65/1968-69, avg. 1969-70 1970-71 1971-72 1972-73 1973-74 1974-75, est
65,219 71,895 70,524 70,405 76,595 81,174 83,700
Jan. -Dec., Jan. 1974 Feb. 1974 Mar. 1974 Apr. 1974
May 1974 June 1974
Cents per lb. 10.29 12.63 17.09 18.11 19.25 23.05
Cents per lb. 9.61 15.32
21.28 21.27 21.77 23.65 23.67
New York duty paid for bulk sugar under contract No. 10, duty paid or duty free, 2 Bulk sugar under contract No. 11, f.o.b. and duty rate 0.625 cents per pound. NOTE: A deduction from the U.S. stowed at Greater Caribbean ports, including Brazil. spot price of about 1.5 cents per pound for duty, freight and insurance would need to be made for months shown above to compare with world prices. 1
and had to be reseeded. duction
favorable portedly verse
15 percent lower.
up about 16 percent. in Spain have been
Crop conditions reported
Turkey’s Cotton Acreage
the case for Yugoslavia
likely to decline in spite of
12.5 percent. Germination
was slow and patchy due to dry weather United Kingdom, where produc-
Despite Lagging Export Sales OSBORN
By LARENCE E. and HORACE
Foreign Commodity Analysis, Cotton Foreign Agricultural Service
decline 150,000 tons to total
only 889,000 tons. is
dry cold spring
expected to lower production in the
The USSR announced on May 28 that sugarbeet planting was completed. Acreage there rose slightly this year, and plans call for an increase of sugar production
of beet sugar in the United States for
likely to decline
support prices for raw seed cotton, with
source of foreign exchange. Even
the present system beginning with the
though the 1973-74 crop had its ups and downs, the generally favorable outcome the world’s fourth largest cotton
1966 crop. In each of the major producregions Cukorova, Aegean, and Antalya the Government announces the level of seed cotton prices at which
each Regional Cooperative Union (Taris,
should boost acreage
should export about 1.3 million bales in
and possibly lower
has shipped an average of over
Higher prices for sugar this year have caused consumption to dip in some countries. Continued consumption gains are expected in
Many of these, both producand consuming, control domestic prices to consumers.
producing countries that export
and do not control domestic prices, the sellers’ market of the last few months has pressured prices at
quently triggered consumption declines.
Advancing prices have discouraged consumption in Argentina, for example, where sugar usage dropped by 4 percent in 1973-74. In Canada, per capita consumption was down a pound or more in 1973-74 from the 104-pound Conversely,
have held essentially constant since 1956 in Venezuela, and consumption continues to retail
market cotton through coopera-
ers to tives.
most other cotton-producing
countries, cotton prices started the 1973-
74 season well above 1972-73 levels and moved still higher, climbing to nearly 82 cents per pound for Standard white
the Izmir market.
nation, and, as a result, reduced both
acreage and yields. Area
1.7 million acres, representing a yield of
payment, and unpaid portions
about 657 pounds of lint per acre, compared with 637 pounds in 1972-73 and a record 677 pounds in 1971-72.
This dissatisfied some producers, but
expected to influence
full price for their
a result, the co-ops
now being settled with increased made available by the Govern-
N RECENT YEARS, except
unginned cotton) below normal, local buyers of unginned cotton reduced the price paid to farmof
tinuing favorable market factors, indi-
either private firms or
season to cause some damage to germi-
value, about equal to the previous year a
decline, support prices encourage farm-
levels for cotton in 1973, as well as con-
nearly 3.4 million tons, raw
world prices are well abouve support levels, cotton flows easily into mar-
percent from nearly 2.5 million bales a
members and nonmembers.
1973-74 production of raw cotton
Cukobirlik, and Antirbirlik) will receive
Japan’s 1973-74 consumption
raw cotton exports may decline somewhat over the next several years as cotton mill consumption rises.
74’s because of a slight drop in acreage yields.
USSR, and Egypt
about three-fourths of Turkey’s cot-
moved to West European markets. In 1972-73 over half or 783,000 bales went to Western Europe, and 131,000 bales went to Eastern Europe. Leading markets for Turkish cotton in 1972-73 were the People’s Republic of China (PRC), 225,000 bales; Lebanon, 219,000 bales; the United ton exports have
more remunerative sugar prices in 1974, a number of new mills are being planned or proposed. The
of about 2.5 million bales, and yields a crop of 2.7 million bales. Both totals
Kingdom, 195,000; Switzerland, 166,000; West Germany, 153,000; Belgium, 91,000; and Italy, 70,000. As of mid-March, export data were available for only 6 months (Aug.-Jan.) of the 1973-74 season. Of the 516,000 bales Turkey exported in this period. Western Europe reportedly took 3 14,000
compare favorably with the
cate that total area planted to cotton in
1974 may increase
as 15 per-
Sugar mill construction has become
cent, to total 1.9 million acres, slightly
so expensive in the past few years that
exceeding the record 1972-73 acreage. Trendline yields favor a 1974-75 crop
likely to assure
adequate capacity for
at least the next several years.
at the estimated
record output of 2.5 million bales.
For some years Turkey has
Europe, 35,000; and the
While a number of Provinces grow Foreign Agriculture
price increases for cotton textiles
During the 1973 season, Turkey had four or five mechanical harvesters,
cated at research stations in the cotton
purposes. Technically, mechanical harvesting
a simple operation that separates the
seed cotton from the plant in the In
handpicking to mechanical harvesting
Some Mechanical harvesters,
most of Turkey’s cotton
in three areas
bales in 1973-74, about
the country’s total production.
Turkey’s largest and
most dynamic cotton zone.
systems here are being enlarged each year by the Ceyhan River Irrigation
Such expansion serves
stantially offset the loss of cotton acre-
age to fruit and vegetable production in the Cukorova. Cotton
clearly a strong
contender for irrigated land in
Aegean must compete
the second major cot-
ton producing area, the
past 2 years has accounted for about a
however, the surge
demand may well slacken. In March 1972 the Government
In this textile industry
not likely to be the only beneficiary.
Synthetic fibers will undoubtedly gains,
view of Turkey’s
third each of Turkey’s cotton production
plans to expand synthetic fiber plant
and acreage. Cotton is grown under hot and humid conditions in the Antalya region, which produces about one-tenth of Turkey’s cotton crop and is its most stable producing zone. Rising production costs and demand for food crops darken the
near future will
be small for some years to come.
three-fourths of Turkey’s cot-
ton area receives irrigation at least once
a foremost factor in a conver-
sion to mechanical harvesting. Precise
application of water to cotton can reduce excess foilage and influence seed
of the total area of irrigated crops from the
level of 4.8 million acres to
6.1 million in 1977, a
jump of 28 perwould in-
cent. Irrigated cotton acreage 1
million acres, or 26 per-
cent of the total irrigated
5-Year Plan, which proposes expansion
arly in the 1973-74 season the Government notified cotton mills that it would not make any special pro-
handpicked and machinepicked cotton. However, even if some mechanical pickers were imported for commercial use, it seems virtually certain that the impact of mechanical harvesting on the Turkish
In late 1972
spindles in 1972.
Turkey classified textile machinery as a nonduty tariff item. In addition, the interest rate for intermediate term credit for the purchase of textile machinery was cut in half, to 6 percent. These incentives resulted in an expansion boom. The 1976 goal is 3.5 million spindles, up from about 1.2 million operating
for irrigation water with a wide range
of field crops.
40 percent of With in-
and gin yards, and
pending upon the cotton harvest for a sizable share of their cash income.
(Cukorova zone), Izmir (Aegean zone), and Antalya (Antalya zone).
in the lifestyle of families currently de-
of these include changes in cul-
tural practices, gins
are located at research stations in Turkey's principal cotton regions for demonstration purposes. Above, a cooperative gin in Antalya, Turkey’s most stable production zone, where one-tenth its cotton is grown.
1972, to 1.5 million or 24 percent of the planned irrigated acreage in 1977.
This gain of 296,000 acres in irrigated
vision to reserve cotton for mill needs
cotton area does not appear unreason-
other crops; however, this
yond the 100,000 acres presently sown
and would not intervene in their behalf regarding prices at which mills would buy cotton. In late February 1974, how-
to cotton in the Antalya.
ever, ceiling prices for domestic sales of
prospects for an acreage increase be-
often pushed aside in this
cotton textiles and a
cotton partially displaces is
the Plan specifies.
calls for total irrigated acre-
age to expand enough to permit major
area by grain (wheat), and to a lesser
basic products were raised substantially.
gains of over 100,000 acres for each of
by vegetables, melons, and sesame. Although an average annual rainfall of over 40 inches in the Antalya enables cotton to be grown with-
the following crops: Sunflower, wheat,
out irrigation, supplemental water
raised 83 percent, one of the largest in-
Such an increase textiles
pulses and feed, sugarbeets, citrus, and
other industrial crops and cereal. Al-
though targets set forth in the Plan may prove to be larger than can be achieved
risen just over 5 percent annually for
expanding offerings of textiles for the local market. However, the effect on
5 years, to nearly
consumer demand of the
in the price of cot-
plied to about
90 percent of the acreage. Cotton consumption in Turkey has
Smaller gains would occur in
in only 5 years,
be possible to
reach these levels eventually.
Processed Foods Gain
Importance on World Markets By MICHAEL Foreign
Demand and Competition
Economic Research Service
srael has had notable success penetrating European and North AmeriI can fresh citrus markets and its Jaffa oranges are now enjoyed by consumers in such widely separated countries as the United States, the United Kingdom, and Sweden. Less well known on the export market but gaining in importance are products of Israel’s food process-
already extensive in
relation to the country’s size
food processing industry
lation, Israel’s is
expanding rapidly, primarily beits production is con-
cause most of
domestically. Embracing fruit and vegetable processors, dairies, and
vegetable oilseed crushing mills, 84 percent of the industry’s output
sumed domestically country’s
1971. Aided by
steady improvement in the standard of living, this industry
continue as long as disposable
the very high
of 22 percent during the
In addition, export
ing steadily rate
period, 1968-71. Processors
on the foreign market for a steady source of added revenue. For example, exports made up 16 percent of the industry’s production in 1971,
with 9 percent in 1969. Fresh citrus and citrus products are the most important agricultural export items.
In 1961-62, exports of citrus products
and exports of fresh were $49.1 million. By 1971-72, citrus product exports were $49 million, while those of fresh citrus had risen to $112 million. One year later sales to foreign markets climbed even more to $60 million for products and to $117 totaled $9.8 million
million for fresh citrus. Top, a display of processed food items from the Milouot plant near the Israeli city of Acre. Above, receiving area at a new freezing plant in Ashdod. Peas picked in the morning are processed and frozen that same day. Right, an Israeli grapefruit processing line at the Milouot plant.
xports of all processed
frozen, and dehydrated vegetables have increased from $52 million in 1971 to all
in 1972. Total exports of
goal at the end of 1971, and the target
was raised. Present estimates for 197475 are that exports of all processed products should be over $100 million. Citrus export destinations have not changed much in the last few years. The United Kingdom remains Israel’s largest customer for fresh citrus and citrus
Fresh citrus and prod-
Whether these forecasts can be realized will depend on the situation in
uct exports are important not only be-
other tomato processing countries in the
cause of their large volume, but also
Kingdom into the European Community (EC), however,
because of the additional value gained
has brought about a restudy of the fu-
One of the oldest sectors of Israel’s economy some manufacturing con-
1.7 million tons.
West Germany, France, Sweden, the Netherlands, and the United States. Norway and Canada are also growing in importance. En-
the largest share of agriculture’s contri-
products, followed by
trance of the United
ture of this market.
sources from traditional suppliers such
Therefore Israel kets
as Israel, to others that
trying to penetrate present
ones more deeply. This could be
— cerns have been operation food industry 50 years —
sponded to domestic and external deprocessing a wider variety of food items of higher quality. It has further mechanized production processes, devised more effective marketing and distribution systems, and begun to cultivate
those of other producers and customers
must be convinced the quality
the extra cost.
new item and tomato prodThese two countries took 33.2 percent of Israel’s tomato product exports relatively ucts.
The EC took 4.5 percent; Kingdom, 52.7 percent;
European Free Trade Association (minus the United Kingdom), 6.8 percent; while 2.8 percent went to other export destinations. In 1972, the total supply of vegetables
taken by local factories was just
under 155,000 tons, of which 92,000 tons were exported in fresh or processed forms. Tomatoes provided the bulk of such exports. Of the more than 25 kinds of vegetables processed, at least 20 reached the export market, including a wide range of frozen and dehydrated
and most stable industrial branch, reprereal
some 20 percent of
output and employing 15 percent
production. Processed agricultural products are
the foremost exports in
noted as a stable
at the height
—with about 10 percent destroyed animals — more or fed
on the than
Although the crop was
was processed. About 278,000 tons were Jaffa oranges; 181,000 tons Valencias; 143,000 tons grapefruit; and the rest lemons, navel oranges, and tons,
declined from 1,007 in 1965 to 722 in
1970. Most food processors now employ between 5 and 9 persons, with 50 hiring more than 100. Twenty-four of the
volume increase taking place juices and concentrates.
grew from 30,000
72.1 million in 1972, with the greatest
forecast by the
which sees a food industry work force of 40,000 persons by 1976. Investment in the industry continues high with approximately $30 million to
of fresh citrus has increased markedly recently and competition in the
further mechanization and automation
and the introduction of new processing
the range of current products will be
expanded. to forecasts
by the Minis-
Industry, the food
here are ing
1976 and 65 percent more by 1980. Average annual growth is expected to be about 7 percent during the 1971-76 period and 6 percent annually thereafter until 1980. Food exports could have a ing to the Ministry.
of their output to the can-
27 factories process-
producing only citrus segments. Some older, smaller plants have now been merged with larger units for greater these
At the present time, proces-
can take about 650,000 tons of
citrus fruit annually.
be 37 percent greater by
and away from the fresh market.
becoming more intense. To avoid flooding the European market, and to keep shifted
and other dehydration techniques. New products will be developed and
The world supply
processing industry has
be invested on an annual basis until 1977. These funds will primarily go into
technology, especially deep freeze-dry-
In recent years the citrus supply going
processors hire one-third of the labor
value of $160 million in 1976, accord-
In 1973-74, citrus output was over
Leading products of the of food industry work-
and syrups. Production of these products increased from 12.6 million actual gallons in 1960 to
crops suitable for indus-
in 1971, while the
he united states and Canada are becoming increasingly important
products are priced slightly higher than
leading contenders in interna-
processing industry han-
largest load during the height of
the season in February and March. Be-
cause this causes an imbalance in fruit absorption
mainly of citrus segments have signed uniform contracts with the Citrus Marketing Board for specific weekly or
in the season’s
contributor to the gross national prod-
Forecasts for the tomato processing
(GNP), even in difficult times such 1966 and 1967, when GNP growth sagged to 1 and 2 percent, respectively. During the 5-year period, 1966-71, the average annual growth rate for the food sector was 8.2 percent compared with a smaller average GNP growth rate of
industry for 1980 call for juice produc-
In the past, the processing industry
tion to reach $8 million, with
was considered a residual purchaser,
of the volume earmarked for export.
taking that part of the fresh fruit crop
Peeled tomatoes are expected to be $5
that could not be
catsup and tomato sauces, $3 million,
with 15 percent for shipment overseas; and paste and puree, $4 million, with
go into foreign trade.
marketed because of
lower quality or the unsuitability of
major consumer of specifying the quantity and qualis
Continued on page 16
— because of a shortage of rain at sowing time. Poor germination occurred in some areas as dry weather continued
Record 1974-75 Pakistani Wheat and Rice Crops
season. In other regions
farmers delayed too long and were unable to plant. Intermittent rains in December 1973 improved conditions, however, and prospects for wheat that had
Could Alter Trade Patterns
survived the earlier dry weather took an upturn.
recently harvested 1974-
75 wheat crop has set a production record and the rice crop, to be harvested in the fall,
the second consecutive record for both
These high output
probably enable the Government to procure
from farmers and Pakistan is expected its wheat imports and boost its
country has already reached
In an effort to halt the flow of wheat to
high-priced areas, the
restricted interdistrict wheat movements. While this has helped wheat procurement in some surplus regions, the ban has hampered procurement in deficit
Procurement may also be hindered if the Government announces a higher wheat support price too far in advance of the start of planting of the 1975-76 crop
usually in October. If the price
production target of 8.6 million metric
farmers and dealers to hold back quan-
tons, although other estimates place out-
million tons. In any
of 1974-75 wheat for release with
the 1975-76 crop.
and State grain storage capacity is said about 1.6 million tons, 600,000 tons less than the wheat procurement
rice harvest will not take place
target. In the past, this capacity
scheduled throughout the
wheat procurement takes place within 2 months of harvest. Thus, the
production figure would
storage shortfall could affect the rate of
be a record.
wheat procurement and cause wheat
During 1974-75, the Pakistani Government intends to procure about 2.2
be sold on the free market instead of going into the procurement program.
lower output of 2.7 million tons. again,
million tons of wheat, an
meet year-round requirements monthly consumption remains as it was in 1973-74. Although there is little
arrival of large quantities of rice
needing storage before being exported
could also further complicate the wheat
information available about the Gov-
ernment’s rice procurement plans for 1974-75, it has increased the purchase
and coarse rice in order encourage farmers to turn over more
or rice smuggled into India
ment has adopted
control smuggling, including rewards of
grain procurement program.
being patrolled by border guards.
grain from States having a low market price to others offering higher profits.
However, there are a number of important factors that will determine the success of the Pakistani Government’s Free market prices, particularly of wheat, are generally higher than the Government’s procurement price, and in some regions the market price is higher than in others. This causes a flow of
this drive, initiated after large areas of
many farmers when the
planted wheat on the land
water subsided. Adequate
creased and regularized supplies of canal
rainfall also helped.
year assures an adequate supply
for next fall despite earlier fears of a
However, recently announced
although the Government
increase support prices
the higher costs. Wheat output may also be increased somewhat by greater use
of high-yielding varieties.
or 1975-76, the Government is considering a wheat production target
of 10 million tons.
Despite the record wheat crops of the influence
volume had on imports. This is be-
double Pakistan’s. India’s rice prices are
will boost exports if possi-
The Government’s “grow more wheat campaign” initiated in October-November 1973, was mainly responsible for the larger wheat output. As a result of
cause most of the crop increase or
support and market prices
quality than during the previous year.
and Afghanistan could also cut into pro-
price of basmati
ble during 1974-75.
little damage. However, where wheat depends exclusively on rainfall, wheat stands were reportedly of lower
curements. This season the Indian wheat
past 2 years, the increased
of their production. This indicates the
water, and the excellent
The Government’s combined Federal to be
September-November 1974, but Government estimates production reach 3 million tons (milled). Here
In those areas
gated, the maturing crop suffered rela-
absorbed in the countryside. Thus,
although wheat production was 6.9 million metric tons in
1972-73 and 7.8 mil-
lion in 1973-74, imports in those years
per bag of wheat paid to
The Pakistani Government has
20-mile wide wheat-free
portedly placed orders for 200,000 tons
been established and
of U.S. wheat and there are indications
might seek more under concessional
terms. Import requirements will climb
hese measures will probably reduce by small operators, but the incentives remain strong for large-scale
Wheat. Planting of Pakistan’s record 1974-75 wheat crop got off to a slow
further, however, should Pakistan’s wheat procurements fall drastically below the 2.2-million-ton mark. At the present time wheat imports in 1974-75
be about half those of
1973-74. Foreign Agriculture
Over 60 percent of Pakistan’s 197374 imports came from the United States 675,758 tons out of the 1.1-millionton total. Canada was the second largest supplier with 314,535 tons. Because more wheat had been procured from do-
mestic supplies for controlled distribution,
1973-74 imports were 24.7 percent
lower than those of the previous year.
About 580,300 metric tons imported from all sources in 1973-74 were cash purchases, 173,900 tons were financed by a 3 -year Commodity Credit Corporation credit, and the balance of wheat imports consisted of donations.
o supplement reduced Public Law 480 wheat availability in 1973-74,
shipment of 40,000 metric tons of U.S.
sorghum was arranged under
Title I of
P.L. 480, with deliveries taking place in
The 1973-74 crop
from about 3.75 mil-
lion acres. This
an increase of about
2 percent in acreage and 5 percent in production. Yields increased as a result of greater fertilizer use,
the flood earlier
and a timely aerial spray program which checked the spread of insects and other pests from flooded areas. in 1973,
Conditions in Punjab, one of Paki-
important grain States, were
than ideal in June, the only time highyielding
farmers planted basmati rice instead and as a result,
output came to
Much of Pakistan’s record 1974-75 wheat and rice crops will probably be stored in straw-covered ricks like those above in Punjab State. Right, Pakistani baker mixing
water with refined flour to make tandoori roti, a type of bread.
2.5-million-ton target. Late-planted bas-
mati also suffered
an expected 400,000 tons for the 1973-
With the sharp
rise in Pakistani rice
Major export destinations between 1973-March 1974, were: Indonesia,
exports in the past 2 years, this grain
stands second to cotton as a major for-
91,500 metric tons; Iraq, 40,900 tons; Saudi Arabia, 37,800 tons; Persian Gulf
eign exchange earner. figures
a result, rice
planning. Pakistan had a 1973-74 pro-
countries, 29,100 tons;
Pakistan’s rice exports are handled by
curement target of 650,000 long tons of
the Trading Corporation of Pakistan, a
come from Sind State and the balance from Punjab. As of April 30, 1974, the Government had
semi-Government organization. Although total rice export volume this year will probably be little more than
procured nearly 500,000 tons of rice
half that of 1972-73, prices are so
from the two
higher that foreign exchange earnings
be close to, or may even exceed, 1972-73 earnings. F.o.b. prices for bas-
1973-March 1974, of 261,395 metric tons, were
about half the previous year’s total for
mati rice have been about $850 per
(525,000 tons), mainly be-
metric ton with coarse rice selling for about $450 per ton.
cause 1972-73 shipments included large
carryover stocks from earlier crops. For ports
—July 1972-June 1973 —
—Based on report from
Office of U.S. Agricultural Attache
were 775,000 tons, compared with
the full year
— the beverage and food industries.
used to retard sugar crystal-
arabic in spray-
dried flavors has expanded rapidly in re-
duced world supplies of gum arabic and prices of this important water soluble gum have soared. The United States is the world’s largest consumer of gum arabic and the current tight supply
uation and high prices are causing in-
dustry users arabic stocks
have been virtually de-
and imports this year will likely be below the unusually small 1973 level. Gum arabic is used in a wide spectrum of products and industries, where it performs as a stabilizer, emulsifier, or
as a binding agent. It
for use in food products as
and odorless, and when used in association or in combination with other food items,
does not affect their qualities
or food value.
Over half of U.S. consumption
and prepacked cake mixes. Pharmaceutical applications account for about one-quarter of U.S. consumption where the gum is used as a binder in lozenges and pills, and as an emulsifying agent in medicinal
such as castor liver oil. It
El Salvador’s poultry and egg indus-
booming, with much of the credit going to its recently renewed Poultry Development Law, which provides fiscal is
cough and cold remedies. The balance of U.S. consumption is in the lithography, cosmetic, and adhesive industries. The current shortage and high prices for available supplies has sent industry
researchers scurrying to find substitutes.
there has been
the world’s largest producer
arabic, accounting for about 80
Although the Sudanese producing areas were not as hard percent of the
those of other African countries
examination was the Ley de Fomento Avicola Law for the Development of
concerned with not only boosting poulproduction, but also with meeting
the competition offered
the greatest impact exempts the poultry
taxes and duties.
also allows duty-free importation
inputs and frees the in-
dustry from the stamp tax on sales of
poultry products and concentrates.
Ministry of Agriculture began to promote the formation of small farms called, “granjas,” which are technically equipped for efficient and economic production. Development was retarded, however, by the relatively high prices of the
required production inputs.
As El eted,
efforts to find
sources intensified. Taking into account the rapid growth rate of birds, the Gov-
ernment looked source
to poultry as a possible
which sparked rapid growth of
Law prompted a upswing in the commercial poulindustry and egg production. At the
In El Salvador, the
census of the
years later, the figures showed close to 2 million birds,
Development of the
northern Nigeria. All of these countries have been greatly by the Sahelian drought.
Not only has
the adverse weather hurt
from which the gum is who would northe gum have been migrat-
the acacia trees
extracted, but workers
The gum made by nomads,
ing out of the drought areas. collections are usually
the trees after the rainy
season ends and return some months
of drinking water and food for these
workers has become a major problem.
The gum collections usually begin in November-December and continue through until
June or July.
The best grade gum arabic comes from the Kordofan Province of Sudan, which is to the west of the White Nile. Because of the small 1972-73 Sudanese harvest, the Gum Arabic Trading Company (GATC), which handles all of Sudan’s gum sales and exports, has been using new crop material from the 1973-74 collections to fulfill outstanding
been offering the remainder of the 1973-74 crop on a bid basis, and prices
$4,609 per metric ton f.o.b. ($1.50 to $2.09 per pound), compared with year-
$676 per ton (31
cents per pound).
U.S. consumption of
recent years has been estimated at be-
the major portion of U.S.
1961-62 to over 7.7 million
imports, accounting for 95 percent of the 1973 total.
Most U.S. imports made during the months of this year were based on
contracts of last year,
valued at $9.7 million. Sudan supplies
has also been dramatic, with production
egg totals of 700,000.
tween 25 and 30 million pounds annualHowever, U.S. imports of gum arabic in 1973 totaled only 16.8 million pounds valued at $5.2 million, about half of the 1972 imports of 32 million pounds
(1962-63), there were 87 410,000 birds, and a daily production of 155,521 eggs. Just about 10
of the balance of the world’s
Mauritania, Senegal, Chad, Mali, Niger,
time of the
earlier quotations of
country’s poultry industry.
Salvador’s population skyrock-
The Salvadoran Law was patterned after one adopted by Guatemala 2 years ear-
1950 that development of El Salvador’s commercial poultry operations was begun. At this time It
the Poultry Industry. El Salvador
poultry complex. the
were sharply lower.
later to collect the exudate.
success achieved with cornstarch deriva-
1972, well below the 1965-69 aver-
age of 53,019 tons, and 1973 shipments
also used as a stabilizer in
incentives for the country’s expanding
The provision under
crops have been
Salvadoran Law Aids Poultry Industry try
belt, rainfall in re-
exports totaled 43,756 metric tons
cent years, especially in packaged gela-
he African drought has
cent years has been below normal and
widely used as a foam stabilizer in beer and soft drinks and is an important item
1973 contracts, and new conprobably not be arriv-
tract material will
Office of U.S. Agricultural Attache
ing until early
Special Studies Branch,
CROPS AND MARKETS come completely by
GRAINS, FEEDS, PULSES, AND SEEDS —
Conditions reported as of early July indicate prospects for a gross grain crop of about 215 million metric tons in the Soviet
tons larger than the
of this size would be roughly 10 million
Department of Agriculture
mid-June. The record 1973 crop
expecting a normal grain harvest
the hot, dry weather reported at the beginning of July continues throughout the country.
Rotterdam Grain Prices and Levies Current offer prices for imported grain
The current estimate for both 1974 Soviet wheat production and coarse grain output is 100 million tons. Each is up 5 million from the mid-June estimates. The current estimate for miscellaneous grains and pulses remains unchanged from the
Change from Item
Cents per bu.
15-million-ton estimate of mid-June.
Weather during June this year was generally favorable for development of the USSR grain crop, particularly for spring grains. Precipitation for the month ranged from slightly below average in the extreme southern part of European USSR to more than double the normal amount in the Volga Region. Over most of the major agricultural areas of both European and Asian USSR, June precipitation generally ranged between 125 and 150 percent of normal level. Soil moisture supplies at the end of June mostly were improved from those of a year earlier. Areas with smaller supplies of soil moisture this year than at the end of June in 1973, were Moldavia, the southern and eastern parts of the Ukraine, the North Caucasus, and Altay Kray. However, soil moisture supplies at the end of June 1974 were below the 1969-73 average for that date in most areas from the Urals eastward, as well as in Moldavia and the Southern Ukraine. On the other hand, moisture supplies were significantly better than the 1969-73 average over all of the major agricultural areas of European USSR, except Moldavia and Southern Ukraine. s
Unfavorable Weather Clouds East European Grain Outlook The late April-early May rains that Europe’s drought continued throughout
Netherlands, compared with a week earlier and a year ago:
totaled 222.5 million tons.
announced goal for 1974, and would be
10 million tons higher than the amount estimated by the U.S.
tempered by recent reports of continuous heavy cool temperatures in
Soviet Grain Prospects Improve
the optimistic outlook as of the beginning of July, has been
Wheat: Canadian No. Australian
threaten that area’s grain prospects. Persistent rainfall,
accompanied by high winds and unseasonally cool
5.90 C) 0)
C) C) C)
U.S. No. 2 Dark Northern Spring:
14 percent 15 percent U.S. No. 2 Hard Winter: .
sorghum 3 Feed barley
13.5 percent No. 3 Hard Amber Durum Argentine U.S. No. 2 Soft Red Winter. Feedgrains: U.S. No. 3 Yellow corn .... Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero .
5.14 7.81 C) C)
3.45 3.77 3.11
3.25 3.68 3.09
+ 10 + 1
1.02 .49 .60
Soybeans: U.S. No. 2 Yellow
EC import Wheat 3
3 Basis c.i.f. Tilbury, England. Durum has original Levies applying in six EC member a separate countries. Levies in UK, Denmark and Ireland are adjusted ac5 Italian levies are 19 cording to transitional arrangements. Note: cents a bushel lower than those of other EC countries. Price basis 30- to 60-day delivery. 1
broke East and June, and
weather, has caused sporadic flooding. Serious lodging could result if rains continue.
Hungary and Czechoslovakia appear
to be the hardest hit
and unusually cold, windy weather. may have destroyed nearly 30,000 acres of the Hungarian grain crop, while other sources indicate the damage could be more serious. Rainfall in Czechaccomoslovakia has continued almost daily since early June panied at times by unusually cold temperatures and hail storms intensifying the perennial problem of a shortage of by the continuous
Press reports indicate bad weather
dry storage space for grains.
In Poland, lack of moisture in early spring has been overJuly 22, 1
Cotton Exports Push 1973-74 Near 5-Million Bale Mark
of 561,000 running 10 months of the 1973-74 season to 4.8 million. Cumulative shipments were 17 percent above those for the same period last season and represent the
U.S. exports of raw cotton in
bales brought the total for the
bales were exported. Exports for the entire 1973-74 season
estimated at 6.1 million bales, 100,000 higher than
and 15 percent higher than exports of
million bales in 1972-73.
shipments to European destinations of 76,000 bales,
or 14 percent of the total, were also 14 percent above the
67,000 bales shipped in
1973. Cumulative August-May
range from about 7 to 14 cents per pound depending on
restitution for these tobaccos
and destination, apparently no such limitations will apply to tobacco disposed of by export tender. This could become a convenient and regular method for disposing of surplus Community tobacco stocks.
shipments to Europe of 674,000 bales were the second highest since
1967-68, but 35 percent
period of 1972-73 which exceeded
than those for the same
exception of the Scandinavian countries,
European destinations registered declines in May shipments this year from those of May 1973. May exports to non-European destinations, totaling 485,000 bales, were 31 percent above shipments in May 1973. May 1974 exports were substantially above May 1973 levels to Indonesia, Canada, Malaysia, Morocco, Singapore, and the People’s Republic of China, but lower to Ghana, South Korea, the Philippines, and Thailand. Cumulative August-May exports to all non-European destinations of 4.1 million bales were up 35 percent from the 3.1 million bales shipped during the same period last year. mania, and Spain,
DAIRY AND POULTRY
With the Poland, Ro-
The 6.5-cents-per-pound export subsidy established by the European Community on May 1 was terminated effective July 1. Some 48 million pounds were exported, about half of it to the USSR, with the aid of the subsidy. There are now no EC export subsidies for poultry meat or eggs.
West Germany Approves
Low-Fat Butter West Germany has approved the production and marketing
of butter with a fat content of at least 39 percent but not
more than 41 dairy cream or
TOBACCO EC Authorizes Aid For Wrapper Tobacco The European Community Council has authorized
aid” to ensure sale of Italian cigar wrapper tobacco left over
from the 1968 and 1969 crops. Processors of these tobaccos will receive payment equivalent to 4.45 units of tity
account per kg (about $2.44 per
of wrapper involved
One purpose of authorizing the low-fat butter is to assist consumers in reducing caloric intake without drastically changing consumption habits. Another is to help the dairy industry meet competition from the margarine industry, which has developed a type of margarine with fat content of about 40 percent. This margarine product has been on the German market for a number of years and reportedly has found favorable consumer acceptance.
The special aid is justified on grounds that the wrapper accumulated before the Common Agricultural Policy for tobacco went into effect, and therefore, was not eligible for the buyers premiums payable by the Community on wrapper from the 1970 and subsequent crops. The buyers premium
must be produced from milk protein added.
percent. This butter
1974 crop wrapper
SUGAR AND TROPICAL PRODUCTS Brazil
1973 Sugar Exports In 1973 Brazil increased sugar exports by 13 percent over
1972’s level to 2,970,600 metric tons, valued at
of account per kg.
Exports were largest to the United States, totaling 445,600 metric tons. Exports to the Soviet Union (440,300 metric lion.
EC Issues Tender For Italian Tobacco On June 24, the European Community Commission
tons) and the People’s Republic of China (371,300) compare with those of 1972, which were 330,200 and 410,700 metric issued
an invitation to tender for export of 17.2 million pounds of tobacco from the 1970 crop being held by the Italian intervention agency.
The tobacco offered apparently represents the remnants of 1970 crop intervention stocks and includes about 5.5 million pounds of burley and 8.2 million of oriental and semi-oriental. The dealine for submission of bids is September 6. Acceptance of tenders would be made within 15 days following the
producing Islamic countries,
notably Iran and Iraq, were up. In terms of 1974-75 production, Brazil has authorized a 12
percent increase, to place the total at 125 million bags, or 7.8 million metric tons,
raw value. Production during the 1973-74
season was 6.9 million tons. The Sugar and Alcohol Institute is
investing $183 million in a
to increase production
capacity to 9 million metric tons by 1977.
into export markets at prices
well below the cost of production.
The burley could compete
markets with lower quality hurleys from other sources and the oriental conceivably could be attractive to U.S. manufacturers in view of current high prices for Turkish and
presently subsidizing exports of 1971 and 1973
crop Italian tobaccos, including burley, to specified destinations in North Africa, Eastern Europe, and the Far East. Sub-
Peanut Meal Exports During January-March 1974, India’s exports of peanut meal rose to 302,300 metric tons 24 percent' above the 243,900 tons shipped during the same 1973 period. Nearly
180,000 tons, or three-fifths of the
planned countries, compared with
EC REFERENCE PRICES FOR FRESH LEMONS
less than 140,000 tons, or 1973 period. Japan, the largest single destination, registered about 55,000 tons of peanut meal, or 5,000 tons less than during same 3 months of 1973.
increase reflects larger availabilities
from the record
6-million-ton 1973 peanut harvest. Exports for calendar 1974
expected to be about
and 855,300 tons
units of account
per 100 kg]
June 1974 July
Peru Sells Fishmeal to the PRC
January 1975 February
of the Peruvian fishmeal and
disclosed plans for contract negotiations during
August-September this year with representatives of the People’s Republic of China (PRC) on fishmeal purchases. Reportedly the PRC will be seeking a 2-year contract for 1 50,000
tons of fishmeal per year. that,
based upon a recent 4-month
PRC, the bulk swine feeding in communes trip to the
of the fishmeal would be used for surrounding major coastal cities. Payment arrangements between Peru and the PRC are in pounds sterling.
During October 1973-June 1974 the period corresponding marketing year Brazilian exports of soybeans and meal (meal basis) declined to 1.5 million metric tons, compared with 1.66 million for the same 9-month period of
for the current period
equal to the
meal fraction of 69.4 million bushels of soybeans 7.6 million less than that for the volume shipped during the first 9 months of 1972-73. All of the decline was reflected in reduced meal exports which, at 810,000 tons, were down more than 300,000 tons from those for the 1972-73 period. The bulk of Brazilian soybean and
(24.5) (24.9) (22.1) (19.4) (17.6) (18.1) (18.9) (18.5) (19.0) (19.7) (20.1)
Official parity between the EC’s unit of account (u.a.) and the U.S. dollar is u.a. equals US$1.20635. This, however, merely represents an overall approximation. A more precise measurement would necessitate adjustments to reflect the relationship of the respective currency of each EC Member State to the unit of account and to the current value of the U.S. dollar. 1
Soybean, Meal Exports Lagging
to the U.S.
27.3 27.7 24.6 21.7 19.7 20.2 21.1 20.7 21.2 22.0 22.4
meal exports move to East and West
Generally Below Normal The performance
far in the current
season has been generally tardy in coverage and below normal in
performance. Available information indicates that kharif harvest) sowings in parts of the country have been de-
layed because of the monsoon’s performance. This delay
activity will place increasing
importance on the
behavior of the monsoon during the balance of the season.
Turkey Resumes Poppy Cultivation
EC Changes Selected Fruit Export Subsidies
The European Community announced sidy changes effective June 19,
several export sub-
1974. Iceland has been re-
of third countries to which the apple
export subsidy of 3 units of account per 100 kg applies. In addition, a subsidy of 4 units of account per 100 kg was established for fresh peaches.
The Turkish Government recently announced resumption opium poppy cultivation. A resolution has been signed authorizing opium poppy cultivation in six Provinces in western Turkey. This comes exactly 3 years after the Turkish Government had agreed to terminate opium poppy cultivation, and of
had proceeded with U.S. assistance to find appropriate tute enterprises for opium-producing farmers.
The termination of opium poppy cultivation was never a move in Turkey, and became a heated issue during last year’s national election. At that time, both major political parties campaigned on a pledge to resume poppy cultivation. popular
State farms began germinating will distribute
EC Sets 1974-75
into the prices
to the farmers for planting in October.
Reference prices were established by the European nity
lemons imported during the 1974-75 marketing year. Reference
Other Foreign Agriculture Publications
31, 1974, for fresh
often referred to as
• World Meal Production and Exports:
by the EC Commission for a wide array of and vegetables. The reference price system was
designed to protect Italy, against
horticultural producers, particularly
low-priced imports from third countries.
The 1974-75 reference prices for fresh lemons are generally 11-12 percent above those applicable in 1973-74. Reference prices for 1973-74 are
and 1975 Outlook
World Livestock Numbers for 1974 (FLM 7-74) World Agricultural Production and Trade Statisti-
Report (June 1974) may be obtained free from the Foreign Agricultural Service, USDA, Washington, D.C. 20250. Rm. 5918 S.; Tel.: 202-447-7937. cal
DEPARTMENT OF AGRICULTURE
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PROCESSED FOOD EXPORTS GAIN IMPORTANCE
Continued from page 9 ity
closer control of
Research is also being done to develop tomato varieties for the fresh market but which also are suitable for mechani-
sors can quickly adjust to the vagaries
of the shifting
European and other markets, from the processing of fruit seg-
ments to natural juices to fruit drinks, to meet the dictates of the consumer.
canning industry ab-
sorbed just under 17,000 tons of toma-
mainly of corn, green beans, carrots, broccoli,
1971 amounted to some
$400,000, with returns from 1973 ex-
ports expected to reach about $2.5 million.
plants in operation with a capacity of
The vegetable processing industry has grown rapidly and both domestic supplies and export increases show this. Divided into three main branches can-
variety of tomato sauces, tomato purees,
ning (mostly tomato products), dehy-
purchase taxes, or other fees on raw
the industry has
seen a marked growth in tomato supplies for
food processrefunds customs duties, intermediate
direct local taxes through a special re-
expected to show large
and used surplus produce. Now the industry buys vegetables grown specifically to meet its needs. The most important dehydrated products are carrots, onions, potatoes, red and green peppers, and red beets. The industry bought about 26,000 tons of vegetables in 1971 and forecasts indicate that by 1980 it will use close to 90,000 tons. Judging from past experience, it is probable the forecast is on the low side. The frozen vegetable industry began production in 1971, and domestic sales
line to include
products. These might
and other tomato products now being produced in some larger industrial sauces,
countries, but not yet
Vegetable dehydration was
probable the industry
include tomato powders,
Total fresh tomato production in 1972 was 161,000 tons, of which more than half went to the processing industry. The industry will probably be able to handle about 150,000 tons in the next few years, almost double the present level.
about 25,000-30,000 tons,
priority to developing the
offshoot of the fresh vegetable industry
Local consumption of these
about 45,000 tons.
took 66,000 tons and
whether produced in Israel or imported. Exporters receive compensation for in-
canning and vegetables for de-
duces peeled tomatoes, tomato juice, a
86,000 tons in 1972. The industry pro-
include broccoli, brussels sprouts,
corn on the cob, and peas. Exports con-
in Israel. *
GOVERNMENT PRINTING OFFICE
fund proportional to the added value of the exported products.
The Ministry of Commerce and
dustry participates in export promotion
and pays part of promotion market surveys, participation in international shows and fairs. It also maintains overseas sales promoactivities
tion offices. also helps by makworking capital for exporters to be used to purchase raw materials and pay salaries, and other costs. Other incentives include Government development loans and tax concessions.